Virgin Blue pays short-term price for expansion

Virgin Blue reported an 8.8% decline in profit for the fiscal semester ended Dec. 31 to A$113.3 million fuel ($104.1 million) from A$124.3 million in the year-ago period as competition and heavy investment in future expansion took their toll.
During the six-month period, the LCC took one-off charges of A$21.8 million related to the introduction of E-170s (ATWOnline, April 3, 2007), its New World Carrier program and the launch of its New Zealand and V Australia operations. It firmed purchase ...